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RBI Grants Paytm Payments In-Principle Approval as Online Aggregator, Lifts Merchant Freeze

After ending a three-year ban on new merchants, the RBI demanded PPSL complete a combined system cybersecurity audit within six months to secure final authorisation.

Paytm
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Overview

  • The RBI issued in-principle authorisation on August 12 for Paytm Payments Services Ltd to operate as an online payment aggregator under the Payment and Settlement Systems Act, 2007.
  • Merchant onboarding restrictions imposed in November 2022 have been withdrawn immediately, allowing PPSL to onboard new online merchants.
  • Final approval depends on PPSL completing a system and cybersecurity audit by a CERT-In empanelled auditor, a CISA-registered professional or a DISA-qualified expert and submitting the report within six months.
  • The authorisation covers only online payment aggregator activities defined in the RBI’s PA-PG Guidelines and excludes merchant payout transactions routed through escrow accounts.
  • Ant Group’s recent exit and the RBI announcement drove One97 Communications shares about 6% higher to multi-year highs, reflecting investor optimism.